Economic Benefits of Risk Sharing

Abdul Karim Abdullah

doi:10.12816/0009881

Article Details

Economic Benefits of Risk Sharing

Authors:

Abdul Karim Abdullah

Publisher:

International Institute of Advanced Islamic Studies

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

Islam and Civilisational Renewal 2014 vol.5 Issue 4, pp.514-528

Document Type:

Article

Publication Date:

10/2014

Document Language:

English

Document ID (Org No.):

59946

Frequency:

Quarterly

pISSN:

13940937

DOI:

10.12816/0009881

Descriptors:

Abstract:

 Discussions of the benefits of risk sharing tend to be confined to benefits at the company level. These include remaining debt-free and the fact that capital, unlike borrowed funds – apart from listing, legal and other fees – comes at zero cost. What tends to be overlooked is that the use of risk sharing also brings major benefits to society at the macro-economic level. Specifically, it contributes to the realisation of the leading economic objectives of government stabilisation policies. These include an efficient allocation of resources, full employment, stable prices, robust growth, a more even distribution of wealth, and greater cyclical stability. Thus, channeling capital into investment by means of risk sharing in preference to borrowing at interest can significantly alleviate the macro-economic problems currently plaguing most industrialised economies.

Article Details

Economic Benefits of Risk Sharing

Authors:

Abdul Karim Abdullah

Publisher:

International Institute of Advanced Islamic Studies

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

Islam and Civilisational Renewal 2014 vol.5 Issue 4, pp.514-528

Document Type:

Article

Publication Date:

10/2014

Document Language:

English

Document ID (Org No.):

59946

Frequency:

Quarterly

pISSN:

13940937

DOI:

10.12816/0009881

Descriptors:

FINANCE

RISK MANAGEMENT

FUNDS

INVESTMENTS

SAVINGS

Issues

Article Details

Economic Benefits of Risk Sharing

Authors: Abdul Karim Abdullah

Publisher: International Institute of Advanced Islamic Studies

Main Topics: Islam, Bábism & Bahá"í Faith

Journal: Islam and Civilisational Renewal 2014 vol.5 Issue 4, pp.514-528

Document Type: Article

Publication Date: 10/2014

Document Language: English

Document ID (Org No.): 59946

Frequency: Quarterly

pISSN: 13940937

DOI: 10.12816/0009881

Descriptors:

FINANCE

RISK MANAGEMENT

FUNDS

INVESTMENTS

SAVINGS

Issues

Authors:

Abdul Karim Abdullah

Publisher:

International Institute of Advanced Islamic Studies

Main Topics:

Islam, Bábism & Bahá"í Faith

Journal:

Islam and Civilisational Renewal 2014 vol.5 Issue 4, pp.514-528

Document Type:

Article

Publication Date:

10/2014

Document Language:

English

Document ID (Org No.):

59946

Frequency:

Quarterly

pISSN:

13940937

DOI:

10.12816/0009881